IE8 - Unable to place cursor after image

Go to CKE demo.
Ctrl-A/Ctrl-X
Insert an image.
Click on the image.
Now attempt to place the cursor after the image to the right or bottom. You are unable to, and at this point, one cannot add anything after the image.

<p>
The story has been changed considerably in its history and subject to numerous modern adaptations and readings.</p>
<p>
<img alt="" height="77" src="http://a.cksource.com/c/1/inc/img/demo-little-red.jpg
" width="102" /></p>
<p>
The version most widely known today</p>

Place the cursor in one of paragraphs and try to move up or down with arrow key